Why Your F&I Department is Key to Excellent Customer Experiences

The car buying process is changing rapidly. While customers were already getting more comfortable making big purchases online, the lockdowns from the COVID-19 pandemic further motivated people to start the shopping process from home, even for big-ticket items such as furniture, appliances, and, you guessed it, cars.

Whether they don’t like haggling with salespeople or have the patience to wait for financing, it’s clear that dealers have an opportunity to make the consumer journey more enjoyable. In fact, 87% of Americans dislike at least one aspect of the dealership experience.

If you’re looking for ways to bring in more business and improve customer loyalty and satisfaction, this piece is for you. In it, Superior F&I Solutions discusses why your finance and insurance (F&I) department is so essential to today’s car buying experience.

The Modern Consumer Journey

Think with Google found that 60% of shopping occasions start online. What's particularly interesting is that 83% of car purchasers spent up to three months doing research. Furthermore, 88% of purchasers who watched online videos during their research process were 100% certain about the vehicle they wanted before they arrived at the dealership.

Essentially, when most car buyers show up at your dealership, they already know what car they want and are ready to purchase it. These facts not only highlight the savviness of today's consumers, but also show how people are looking for an expedited dealership experience.

Fostering an Engaging F&I Process

In order to provide a positive experience, dealerships need to focus on speed, individualization, and customer service. This trivium of priorities will help you lock in returning business, build trusting relationships with customers, and inspire customer loyalty. Here's how to make it happen:

1. Put the Pedal to the Metal

Buying a car is an exciting moment, and your sales process should match that. Unfortunately, many consumers note that their dealership experiences are long and stressful.

Start outside the F&I department by leveraging technology that quickly locates test-drive vehicles and checks for inventory. Remember, most customers already have a specific idea of what they want when they come in.

If you haven't done so already, ensure your dealership management system (DMS) is integrated with your F&I system to minimize duplicate data and information entry. This tech solution can work wonders for limiting customer downtime.

The F&I process can be a serious drag on customer satisfaction. From long wait times and lack of transparency to pushy sales tactics and poorly communicated value propositions, this chapter in the car buying journey can be a make-it-or-break-it moment.

The longer you keep your customers waiting, the faster they’ll want to leave, which means they’ll be less receptive to any F&I products and services you present. The new push for expeditious service also means dealers have less time to build a strong relationship with their customers. For that reason, you should make certain that every person in your dealership is trained to maximize customer touch points.

Lastly, opt for eContracting whenever possible. People are increasingly used to filling out “paperwork” online and signing agreements and contracts electronically. Keeping all of this information in your DMS will also help you follow up on lost sales.

2. Individualize Your Menu

Many dealerships are integrating mobile tablets into their F&I process to gather helpful customer information, better present menu options, and individualize their products and services.

Customize your presentation to align with the driver’s preferences, how they’ll use the vehicle, and their driving habits and history. For instance, let’s say your customer has previously broken down on the side of a highway. You could then reiterate this history and align it with a product that genuinely helps them.

For example, "Because you travel a lot for work and have dealt with a few flat tires in the past, you may want to consider our roadside assistance protection. Not only does this cover flat tires, but for more serious mechanical issues, it'll cover finding you alternative transportation and emergency lodging."

3. Provide One-of-a-Kind Customer Service

Provide what a computer can’t: extraordinary customer service.

First, drop the car buying jargon whenever possible. People see a lack of transparency as a source of heightened stress at a dealership. So, be mindful of how you talk to your customers. If you're using dozens of buzzwords while presenting F&I products, people will swat those options away.

With a vehicle being one of the most significant purchases a person will make in their lifetime, it makes sense that people want to do some research online. Through that process, they educate themselves, determine what makes and models fit their needs, and read reviews. Now you need to pick up where the internet left off.

More specifically, you should educate your customers on F&I products rather than sell them. Go over why the expense is a worthy investment, talk about situations where the product or service would be helpful, and ask if they have any questions.

Next, help them determine which F&I products work best for them. Align specific products and services with their driving experiences.

Give them feedback on which products you recommend and think work best for their given situation. They'll appreciate your empathic approach, and you'll build long-term trust.

Why Training is so Essential in Today’s Market

Recently, the average age of vehicles on U.S. roadways rose to a record 12.1 years. While this average has grown steadily over the last decade and a half due to improved quality and increased prices, the trend accelerated during the pandemic.

Considering the average life expectancy in the United States is 76, the typical driver will likely buy five vehicles in their lifetime. That's a significant decrease from just a decade ago when the average was 9.4.

These statistics are important to consider for a variety of reasons. Most notably, as vehicle purchases continue to decrease, each sale becomes more critical.

Moreover, when it's clear that the car-buying experience is vital to returning customers, salespeople need to make the process as enjoyable as possible. To do this, digitize and automate as much paperwork as possible and train your sales team to facilitate a one-of-a-kind, in-store shopping experience.

Ultimately, a dealership's F&I department can be the key to long-term customer loyalty and satisfaction. Their products can offer unrivaled protection and ensure customers receive top-quality repairs and maintenance, but, all too often, the benefits are communicated like a sales pitch.

Invest in the Future

Every dealership should invest in F&I training to ensure customers are getting the most out of their vehicles and that dealerships build strong businesses. Training will help ensure you’re compliant, create a better customer experience, and promote repeat business. If you're ready to get started, visit our contact page to get connected.